Undergoing a change in name and investment strategy, the Principal West Coast Equity Fund is now the Principal Capital Appreciation Fund (CMNWX). It says that earlier, the fund was limited to investing in companies located or doing business in Alaska, California, Oregon and Washington. The company expects that the new name and strategy allow it to spot investment opportunities throughout the US.
The group claimed that the investment approach is long-term, generally with a 3- to 5-year time horizon for the fund’s holdings. The buy-and-hold strategy generates low portfolio turnover, which contributes to the fund’s tax efficiency and relatively low expenses.
Dave Reichart, Head of Business Development for Principal Funds, said: “By lifting geographic restrictions on stocks the fund can hold, we’re expanding our opportunity to deliver even more value to the investor. With continued unpredictability in the market, multi-cap investing may be a good fit for investors who are ready to take their money off the sidelines but don’t want to have to decide whether to invest in small-, mid- or large-cap funds.”
Phil Foreman, Portfolio Manager at Edge Asset Management, an affiliate of Principal Global Investors, said: “We prefer to be long-term owners of businesses rather than traders of stock. Being an all-cap fund affords us the latitude to own these successful businesses as they grow from small cap to mega cap. Our objective is to begin investing in these companies while they are small or trading at a discount to their private market value.”
